CFTC charges MF Global, Corzine, O'Brien over brokerage collapse

June 27, 2013|Reuters

WASHINGTON, June 27 (Reuters) - U.S. regulators on Thursdaycharged MF Global, along with its former Chief Executive JonCorzine and former Assistant Treasurer Edith O'Brien, over thefailed futures brokerage's misuse of customer funds and relatedviolations.

The Commodity Futures Trading Commission said MF Global hadagreed to settle all charges against it, pay a $100 millionpenalty, and pay all the funds still owed to commoditycustomers.

MF Global collapsed in October 2011 under the weight ofaggressive bets on sovereign debt, thin capital and questionabledisclosures to investors. Customers were left reeling after itwas revealed that more than $1 billion of their money could notbe found.

Corzine is charged with violating his legal obligations todiligently supervise. O'Brien is charged with aiding andabetting the firm's misuse of customer funds.